No need for Italy to directly invest in Stellantis (STLA), says Minister Giorgetti

Italy’s Economy Minister, Giancarlo Giorgetti told reporters Monday that the Italian government has no need to directly invest in automaker Stellantis (NYSE: STLA), mirroring a statement made last week by the company’s chairman John Elkann.

When reporters asked whether Rome should invest in Stellantis to have more say in how it's run, Giorgetti responded by saying that the company's CEO, Carlos Tavares, has shown his ability to deliver excellent financial results for the group.

"Based on my economic culture, I think that states must enter (companies) only when the market fails and to preserve strategic interests," Giorgetti said during a conference in Milan.

Italy's automotive association ANFIA said last week that a government investment in Stellantis could serve as a balance against the French government's ownership stake in the company.

The French government previously invested in Peugeot maker PSA which in 2021 merged with Fiat Chrysler to form Stellantis.

"I don't know if France has more say than Italy in Stellantis," Giorgetti said on Monday.

Shares of STLA are down 0.13% in mid-day trading on Monday.

By Michael Elkins | [email protected]

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